AEG pressures Trutanich to 'prove it or drop it'

The head of L.A. Live challenged City Attorney Carmen Trutanich on Thursday to either file criminal charges over the Michael Jackson memorial service or apologize for hinting the company may have broken the law.

"Prove it or drop it," AEG President Tim Leiweke said during an interview. "We can't resolve this until he declares we have done nothing wrong or apologizes — I'll take either.

"But he has been going around for five months defaming me and our company and we did nothing wrong."

Leiweke's comments were the latest salvo fired in the high-profile dispute with Trutanich, who wants Anschutz Entertainment Group to reimburse the city for security costs — now estimated at $3.2 million — related to Jackson's July 7 memorial service at Staples Center.

Shortly after taking office, Trutanich told the City Council he not only wanted to recover the city's costs but also was looking into potential criminal or civil violations. He declined to say what, or who, those violations might involve.

As their dispute escalated, Leiweke called Trutanich a "bully" after the city attorney sought more than $6 million from AEG for the memorial service. And the City Council had to intervene after Trutanich threatened to arrest AEG executives or city building inspectors if they issued sign permits for a movie theater at L.A. Live.

Trutanich did not return telephone calls Thursday.

His top deputy, however, said he could not comment about Trutanich's previous statement, nor did he see any reason to apologize.

"I do not discuss any ongoing investigation nor how long it will take," Chief Deputy City Attorney Bill Carter said.

"What the city attorney said was we were looking at all civil and criminal matters involving (the Jackson memorial)," Carter said. "There has never been an allegation against an individual."

Carter also said the city is open to discussing the issue with AEG, but added: "In terms of an apology, I can tell you this office does not intend to issue an apology to anyone in this matter because there is nothing to apologize for."

During Thursday's interview, Leiweke said AEG was "willing to make a contribution" but should not have to reimburse the city for all of the security costs related to the public service for Jackson, who died June 25 from a drug overdose.

"It won't be in the millions, but we don't want to see the (police) department hurt by this," he said.

He also said there are several misconceptions about AEG's role in the event.

"We did not make one dime off it," Leiweke said. "We gave free use of our facility. The only charges we made to the media were to cover the costs" of providing risers and generators for three dozen satellite TV trucks.

Leiweke also said that the Los Angeles Police Department, not AEG officials, originally estimated that more than 250,000 fans could descend on the L.A. Live complex to mourn the King of Pop. As a result, more than 3,900 officers were deployed, many on overtime.

Once it was apparent the crowds were not going to materialize, the officers were demobilized.

"We told them we thought they were being high. But they said, better safe than sorry, and, I don't disagree with that," Leiweke said. "The eyes of the world were on Los Angeles and they did not want a bad image being sent out."

Leiweke also said that AEG suffered financial hardship when the LAPD closed off the L.A. Live complex in advance of the service.

"That hurt us significantly. No one could get into any of our restaurants," he said. "I didn't want that."

Leiweke said AEG is not marketing video from the memorial service, which was broadcast live.

And profits from the movie "This Is It," produced from rehearsal footage of the concert tour Jackson was planning at the time of his death, will help cover the $35 million advance that AEG gave the performer.

"What we would say to the city attorney is tell us what we did wrong and we'll correct it," Leiweke said. "But, stop going around defaming me and my company.

"We pay $100 million a year in taxes. You tell me any other company that would have this man going around claiming we have done something against the law and take it for five months straight. Prove it."

Leiweke acknowledged his company plays a powerful role in downtown issues and he does have relations at City Hall.

"Yes, we do make political contributions," Leiweke said. "Does that mean if I call someone, they'll pick up the phone? Yes. Do I get special favors? No. We are a very public company and get more scrutiny than anyone else."

AEG has spent more than $2 billion on its various projects, from the Staples Center arena to the L.A. Live project and new headquarters hotel.

It received a $55 million loan from the Community Redevelopment Agency that it is repaying at $5 million a year for 20 years.

The city did agree to allow the hotel to recover the hotel bed tax to cover its operations after it opens next year. None of that money is going for the construction costs of $965 million, Leiweke said.